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Jason

Spending Cuts - Spending Is Still Rising Year On Year

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Just having a debate about this, and I wish people would fully understand what spending cuts actually are. Here is what was spent in previous years:

2008/09 - £618bn (source)

2009/10 - £671bn (source) - increase 8.57%

2010/11 - £697bn (source) - increase 3.87%

2011/12 - £701.8bn estimate (source) - increase 0.69%

2012/13 - £713bn estimate - increase 1.60%

2013/14 - £724.2bn estimate - increase 1.57%

2014/15 - £739.8bn estimate - increase 2.15%

In nominal terms we are spending more and more each and every year, we are not slashing spending as the media like to point out. Yes, it is a real cut when you take inflation out (from next financial year onwards) but the media never make that clear.

I know when you look at the detailed figures some departments are getting much less funding, due to more spending in others (e.g. social security benefits) but lets have the real picture to hand!

So in future, when people talk of cuts in the general sense, pin them down and ask them to explain.

Edit: I know many of you know this already, but I thought it another thread reminding the guests was needed!

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What is clear is that much of the heavy lifting will be down to neither higher taxes through growth, nor lower spending through cuts. Rather, inflation is the tool of choice, as confirmed by Obsorne's approval of Mervyn & Cos decisions.

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In nominal terms we are spending more and more each and every year, we are not slashing spending as the media like to point out. Yes, it is a real cut when you take inflation out (from next financial year onwards) but the media never make that clear.

So in future, when people talk of cuts in the general sense, pin them down and ask them to explain.

yup, cannot be repeated often enough imo. It's true the interest on the debt amplifies the cuts in spending on useful stuff, but nevertheless 20% nominal rise in spending in five years is a joke considering what is really required.

And to think of the hoo-ha in the election campaign about £6 Billion of cuts..

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What is clear is that much of the heavy lifting will be down to neither higher taxes through growth, nor lower spending through cuts. Rather, inflation is the tool of choice, as confirmed by Obsorne's approval of Mervyn & Cos decisions.

I think they believe the public are too stupid to realise.

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I think they believe the public are too stupid to realise.

and unfortunately I think they are right, most MPs don't know what the deficit is let alone the difference between the debt and the deficit.

I think all increase in govt spending should require a 60% majority of the public to vote for them in order to be passed. it is our money after all.

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and unfortunately I think they are right, most MPs don't know what the deficit is let alone the difference between the debt and the deficit.

I think all increase in govt spending should require a 60% majority of the public to vote for them in order to be passed. it is our money after all.

Unfortunately people will realise, it's very hard to hide inflation, when peoples food bills keep going up believe me they'll notice and it will only happen for so long before the "stupid public" get it. Once they've realised then the politicians will have problems, this is the calm before the storm.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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